Producers of metals and other raw materials fell as a gain for the U.S. dollar offset deal activity.

The dollar gained after President-elect Donald Trump warned nations considering slowing purchases of the greenback by shifting to other reserve currencies that he would respond with drastic tariffs.

Dollar-sensitive gold futures ticked down 0.8% to $2634.90 an ounce, continuing their recent downswing.

Strategists at money manager UBS Global Wealth Management said the threats were unlikely to slow a "de-dollarization" trend in the developing world.

"We anticipate central banks (most notably in emerging markets) will continue to accumulate gold going forward, which alongside lower U.S. rates and recovering ETF demand should push spot prices higher," said Solita Marcelli, chief investment officer, Americas, at the firm.

Australian gold miner Northern Star Resources agreed to buy De Grey Mining in an all-stock deal valued at roughly $3.26 billion, as gold companies race to secure new mines and capitalize on gold prices near all-time highs.

Coffee futures tumbled by more than 8%, dropping below the key $3-per-pound level as weather conditions in Brazil were set to improve. A drought in key Brazilian regions was a major factor in the rise of Arabica coffee futures to all-time highs.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

12-02-24 1735ET